Red Adair put out oil well fires by setting off gigantic
explosions at the wellhead. "My belief is that the Fred Adair solution
is to blow up or burn the OTC market in credit default swaps," Scholes
said this morning. What that means, he elaborated, is that regulators
should "try to close all contracts at mid-market prices" and then start
up the market anew with clearer rules and shorter-duration contracts.